Search ForexCrunch

According to FX Strategists at UOB Group, EUR/USD could still attempt a move to the 1.1200 region in the near term.

Key Quotes

24-hour view: “EUR traded between 1.1116 and 1.1157 yesterday, lower and narrower than our “lower trading range of 1.1120/1.1170″. The price action is still viewed as part of a consolidation phase and EUR is expected to continue to trade sideways for today, likely between 1.1110/1.1150″.

Next 1-3 weeks: “EUR slipped and closed lower by -0.21% yesterday (NY close of 1.1124). While we continue to hold the same view from Monday (21 Oct, spot at 1.1150), the ‘healthy’ rally that we highlighted appears to have suffered a minor setback. That said, only a break of 1.1070 (no change in ‘strong support’ level) would indicate that EUR is not ready to tackle 1.1200 just yet. To put it another way, if EUR were to move below 1.1070, it would mean the current positive phase that started more than a week ago (see annotations in the chart below) has run its course and EUR would likely consolidate and trade sideways for a period”.